Saks gets defensive as Mexico's Slim ups stake

By Lisa Baertlein

LOS ANGELES, Nov 26 (Reuters) - Saks Inc (nyse: SKS - news - people ) took steps to avoid an unwanted takeover on Wednesday after billionaire investor Carlos Slim Helu reported a stake of more than 18 percent in the luxury retailer.

Shares in the upscale retailer, known for its flagship Saks Fifth Avenue store in New York, gained almost 10 percent. The company's performance has taken a beating since a global financial crisis erupted in September, cooling the buying appetites of its well-heeled shoppers.

Saks on Wednesday disclosed that its board had authorized the adoption of a rights agreement to protect shareholders from 'coercive or otherwise unfair takeover tactics.'

The company said in a filing that the move aims to 'impose a significant penalty upon any person or group' who acquires 20 percent or more of the company's outstanding common stock without the prior approval of the board of directors.

Slim, who amassed a fortune with telecommunications investments and is now one of the world's richest men, has been selectively buying shares in Saks.

Last week, shares in the high-end department store owner dropped to $2.68 a share -- their lowest level since the retailer went public in 1996. Less than a year ago, Saks was trading above $22, on the eve of the Christmas holiday.